DRP is an area plan that provides quarterly coverage for decline in milk prices, milk yield and/or revenue. Coverage offers farmers flexibility in choosing how they want to insure their milk.
- Farmers choose the type of pricing structure (component or class), the amount of milk to cover, and when to insure the milk (quarterly insurance periods available).
- Coverage 70-95%
- Claim occurs when the actual revenue is less than the expected revenue as determined by RMA
- Coverage can be sold